Real Estate Sales Exam Real Estate Sales Fair Housing and Ethics Questions and Answers 2 — Questions and Answers
Question 1: A real estate agent refuses to show properties in a particular neighborhood to a family because of their national origin. Which federal law is being violated?
- Fair Housing Act of 1968 (Correct answer)
- Civil Rights Act of 1866
- Equal Credit Opportunity Act
- Home Mortgage Disclosure Act
Correct answer: Fair Housing Act of 1968
The Fair Housing Act of 1968 prohibits discrimination in housing based on national origin, among other protected classes.
Question 2: Which of the following practices constitutes illegal steering under fair housing laws?
- Directing buyers toward or away from neighborhoods based on race (Correct answer)
- Providing school district information when asked
- Showing all available listings to every client
- Offering a buyer a list of neighborhoods within their budget
Correct answer: Directing buyers toward or away from neighborhoods based on race
Steering occurs when an agent channels buyers toward or away from certain areas based on a protected characteristic such as race.
Question 3: Under the Code of Ethics, a REALTOR discovers that a competing agent has made false claims about a property listing. What is the REALTOR's primary obligation?
- Report the matter to the local board of REALTORS (Correct answer)
- Confront the competing agent directly
- Inform the buyer and ignore the competing agent
- Post a public warning about the competing agent
Correct answer: Report the matter to the local board of REALTORS
The NAR Code of Ethics requires that disputes and ethical violations be reported to the local board for proper adjudication.
Question 4: A landlord refuses to allow a tenant with a disability to install a grab bar in the bathroom at the tenant's own expense. Is this legal?
- No, the landlord must allow reasonable modifications at the tenant's expense (Correct answer)
- Yes, the landlord has full control over property alterations
- Yes, but only if the building was built before 1988
- No, the landlord must pay for all disability-related modifications
Correct answer: No, the landlord must allow reasonable modifications at the tenant's expense
Under the Fair Housing Act, landlords must permit reasonable modifications by disabled tenants at the tenant's expense.
Question 5: Which of the following is an example of blockbusting?
- Telling homeowners that minority families moving in will lower property values (Correct answer)
- Refusing to sell a home to a buyer based on religion
- Charging higher interest rates based on the borrower's ethnicity
- Requiring a larger security deposit from families with children
Correct answer: Telling homeowners that minority families moving in will lower property values
Blockbusting involves inducing owners to sell by suggesting that a protected class moving into the area will negatively affect property values.
Question 6: A real estate agent's client asks them to only market their home to buyers of a specific religion. How should the agent respond?
- Refuse the request and explain it violates fair housing laws (Correct answer)
- Follow the client's instructions as required by fiduciary duty
- Market to all buyers but give preference to the specified group
- Refer the client to another agent willing to comply
Correct answer: Refuse the request and explain it violates fair housing laws
An agent must refuse any client instruction that would violate fair housing laws, regardless of fiduciary obligations.
Real Estate Sales Exam Real Estate Sales Fair Housing and Ethics Questions and Answers 2
A real estate agent refuses to show properties in a particular neighborhood to a family because of their national origin.
Which federal law is being violated?